Question: My wife and I signed a settlement agreement two years ago that was supposed to provide tax-deductible alimony payments to her. I am now in an audit and my deductions have been disallowed, even though our agreement and the court order approving the agreement called the payments to her "alimony." I went back to my lawyer who, after reviewing the drafts and court decree, found there was a word processing error made between the third and last versions that left out the provision that my obligation would terminate upon my ex-wife's death. My lawyer called this error to the attention of my wife's divorce lawyer, who said "tough stuff." My lawyer admits he should have caught the error. Is there anything I can do to salvage what everyone had agreed was a tax- deductible payment?

Answer: Payments from a spouse to a spouse not living with him or her are not taxable to the receiving spouse and not deductible by the paying spouse unless, among other things, the paying spouse’s obligation to continue the payments terminates upon the death of the receiving spouse. In other words, removal of the "termination at death" clause -- by accident or otherwise -- turned what may otherwise have been tax-deductible payments into what may be a non-taxable, non-deductible property settlement.

While there are time limits involved that you may have missed, one remedy may be to ask the family court judge to correct the error -- which was made by inadvertence, neglect, or mutual mistake -- and to change the agreement and court order retroactively.

Other than the potential of taking bankruptcy to discharge what may now be a property settlement (which is a drastic move and may not work), you have few options other than to seek compensation from your lawyer for the lost deductions that his negligence caused.

Question: Before my husband and I divorced four years ago, we signed a separation agreement which, among other things, included a confidentiality clause that restricted me from discussing anything about our business or personal affairs with anyone. If I did, I was subject to severe financial penalties. I recently received an information request from a state taxing agency about certain aspects of my ex-husband's business. I sought the advice of my divorce lawyer who wrote the state people a letter explaining that I was prohibited from providing any such information.

My lawyer received a letter stating that if I did not respond, I could become a target of their investigation. My lawyer tells me that I should go ahead and provide the information, and that I need a criminal lawyer. Since I have done nothing wrong and really don't know much of anything about my ex's business, do you think I should provide the government with what they think I know? Do I need a criminal lawyer?

Answer: Confidentiality agreements are not uncommon in matrimonial cases, especially when there are trade secrets, business dealings, and even personal problems that a party might not want a spouse to discuss with third persons. Generally, these agreements are intended to stop the voluntary dissemination of information to third persons. Since the only parties to a separation agreement are husband and wife, most contain provisions that, should a party be subpoenaed or otherwise required to provide information to a state or federal agency, the penalty provisions should not apply.

Since the state agency was not a party to the agreement between you and your husband, it is probably not bound by its terms. And if the agency is using words like 'target," it appears they are serious about what they think you know. Therefore, you should protect yourself.

We suggest that your lawyer (a) let your former husband's lawyer know that you are being requested to provide information to a governmental agency and (b) refer you to a good criminal lawyer who will be better able to advise you about your options -- which might include taking the Fifth Amendment. This is a serious situation that requires your prompt attention, and because of the possible penalties of suborning perjury and conspiracy, we believe that your criminal lawyer will advise you not to discuss directly any aspect of this situation with your former husband.